watching for darlene, they were watching for roseanne. melissa: maybe they can recapture some of the back and forth. david: i hope they get their jobs back. melissa: that does it for us, the "evening edit" starts now. >> angle over thaksin shinawatra -- the gas tax increase, and the cost of living is changing california to republicans. >> democrats are focused a bunch of seats in california. >> a couple seats tomorrow morning democrats will wake up with no democrat in the race. >> america is not giving up on their grand experiment we launched 2 half years ago. liz: primary night in 8 states, voters set to show us what in a really care about. what is on their minds, set the stage for midterms. if is a make or break night for

democrats in california, new data surfaces about the true state of the golden state, we break it down for you. on cue for voters, not the trouble to come, policies are not fixed, social security swimming in debt, for first time in decade, it is forced to dip into the funds to pay benefits, costs exceeding income there to heated fight between the president and philadelphia eagles. president trump cancels their visit to white house. we'll show you what is really going on with this story and this fight, we deliver the debate behind tomorrow's headlines, i am elizabeth macdonald, the "evening edit" starts right now. ♪ liz: the dow closed lower, ending at 24799.

trade fears, much more weighing on the market. but nasdaq ending in a new record, netflix is jumping. but first, to big primary night, setting stage for midterms. voters in 8 states will tell us what is most important to them. it could be taxes in new jersey, climate change in iowa, gas taxes in california, health care, and plore. more. tonight a outcome could have a impact on midterms. >> to governor brown and sacramento have turned the state fiscally upside down, state and local governments now owe more than $1 trillion in debt. and democrats policies increased taxes, increased housing costs, energy costs, that is no small irony, income inequality is

increasing, the state is now a safe space for criminal illegals, california no longer generating income faster than rivals. washington california tax revenue come from top 1%, and half of bay area want to leave, 46 are fed up with the high cost of living and soaring prices. they may pack their bags and go. we bring in g.o.p. gubernatorial candidate in california john cox, your reaction to that? >> makes me wonder why i want to be governor of the state, right? i think we have a lot of challenges here, democrats have made it worse, i like a challenge. we need to get back to reality. the democrats made this the highest tax state in the country. gavin newsom made a profit to people of california -- a promise to people of california, double state income tax, raise property taxes and defend the gas tax. which has pushed price of gasoline over $4 a gallon.

way more than your neighbors states. i think that people of this state have had fluff, that is why -- had enough that is why they will elect plea i me in no. liz: california has most volatile finances in the country. you are in liberal cal californ. president trump is not liked in liberal california. he is endorsing you. the president's tweet. john, will this help or hurt you? >> i think it will help. i am honored to get the president's endorsement. he is a businessman whose trying to get results, he is getting results, you just talked about it nasdaq hit an all-time high. unemployment, among the blacks and latinos is all-time lows, but you hit nail on the head, inequality in this state is horrendous, reason is because, the democrats in sacramento are literally crushing small

business. i am a small businessman, i started at the bottom, i worked my way up, that is how people climb out of the lower class, the idea of having your own business and make it in america. it is almost impossible to do that now in california, that will change when i am the governor of this state. liz: they want you know, looks like gavin newsom wants medicare for all. that could triple california's state budget. and people won't get the care they expect. >> look at v.a., do you want to wait in line for 6 months to get a precede afte procedure, you ce waiting for that last thing we want to do is centralize more money in corrupt sacramento. we need to lock at other options. liz: let's get to sanctuary state policies, liberal democrat

candidate running for mayor of san francisco, said she is founder of sanctuary law in the city. she spoke to tucker carlson, he is outraged over how original sanctuary law has been twisted beyond recognition. >> i am against it because, i wrote it in early ''90s we did not include violent felony, they amend it in 2013 and 16 to include violent felonies. this is ridiculous, they called me all sorts of names and said this is outrageous i would be attack the sanctuary laws, i am not attack will the law, that i am attacking the vi violence fes they should not be included this any law. liz: what is happening in the state? >> it is crazy. this law is unconstitutional. it will be wiped off when i am the governor, it is about

protecting ms-13. i don't' ms-13 protected. i want them out of this country out of my state. and you know, they attack the immigrant communities worst. so if these people who are shouting racist, really cared about communities of color they would want us to get rid of ms-13 and do something about the safety in their communities. liz: is this shut down working in california name calling? >> i don't know it is, i think most people feel that sanctuary fate lastate law is wrong, they' people going door-to-door pulling grand mothers out, but they would like the criminals gone. ms-13 does not belong, i agree with the president, they are animals, we need to make sure that california is safe for all of us, that is the first rule of government. liz: are you worried about the

controversial border? >> i am, we have to get a fix, i want to work with president trump, with the congress. see that is what business people do, you know it, you are from the business world, we look to solve problems, the politics like gavin newsom like to have them for partisan issues, they like to have the divided points, so they can pontificate, and get a lot of news attention. i am for solving the problem, i want to work with federal government, i am for a border wall, no question, but we need to make sure we get a solution that protects daca kids and deals with need for workers. liz: why are democrats allowing illegals in to the state of california? >> you know, i don't know. >> for votes? >> they ar are looking for more votes, i think. it is a noisy few with a lot of political sway, most people in the state don't want to get involve inned politics -- get

involved in politics, they just want to make a life, feed their families, and politicians and sacramento are making it almost impossible, that you quoted 46% of people in bay area want to leave. liz: arnold schwarzenegger could not change sacramento, he tried? >> he did, but you know, one thing and i will work to get special interest control out of the legislationsure. that is the problem with arnold schwarzenegger, he did not deal with legislature, we have to change it, get power of special interest money, this is all about corruption there, i will propose reforms to get rid of that. liz: john cox thank you. >> thank you. liz: let's get right to what is going on in california. we want to get to hillary vaughn, on the ground in orange county with latest.

reporter: there is a lot at stake for the democrat, right now democrats targeting 4 races in orange county, two are open seats, a free-for-all, under jungle primary system there could be two republicans, completely locking out democrats, they are targeting two republican incumbents here in orange county, dana rohrabacher and congresswoman mexico city walters -- mimiwalters, they say, they are feelinfeel strong. polls close here 11 p.m. eastern time, we have several hours to go before we get an idea of the results trickling in a lot of californians vote by absentee, we expect a pop in a direction who polls close, we have to wait. one thing that we need to look out for, headed to tonight erase dana rohrabacher in huntington

beach, he is being challenged by democrats and republican, which means, there could be two republicans heading to the ballot in november, locking out democrats, that is their biggest fear. so if that happens, millions of dollar was poured into that seat will be a loss for them. liz: thank you, hillary. >> follow the latest in primary poll, and closing numbers, we'll bring you somewher special live, starting 8 p.m. eastern time right here on fox business network. >> looking at major averages. and russell 2000 in record teravaineny. -- territory lead biotec by, ted by materials. reporter: record new highs for nasdaq and russell 2000, dow

down 13, and s&p 500 moved higher. just about 2 points, we did have. technology helped to lead the way, we saw break out to new highs for amazon, apple, microsoft and netflix, records there. and some sad news, kate spade found dead in her new york city apartment today, there was stock reaction, tapestry that bought kate spade brand had a big sell-off but it came up off the lows there has been an outpouring of support on twitter. liz: our thoughts and prayer do go to the kate spade family. >> now trade war, was it overblown? news china is offering a olive branch on the white house. a guest said that the president's tough talks could be working. >> and the president pardoned --

navy seal. and now he wants to sue president obama. bringing in judge napolitano. and trump rescinding his invitation to the nba super bowl champs to visit the white house, after finding out only a handful of players plan to attend, after this. >> we stand to honor our military. and honor our country. and to remember the fallen heroes who never made it back home. polident is specifically designed to clean a denture. the wonderful thing about polident is the fact that it's very, very tough on bacteria, yet it's very gentle on the denture itself. polident's 4 in 1 cleaning system consists of 4 powerful ingredients that work together to deep clean your denture in hard to reach places.

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melissa: many of them are looking down at our country they are proud, we standing it for

freedom, we standing in for patriotism. and we proudly stand for our glorious nation under god. i want to thank you all for being here, this is a beautiful big celebration, actually, to be honest, it is bigger than we an stis paanticipated, thank you vy much, god bless america, thank you everyone thank you. >> president trump rescinding his invitation to novel super bowl champs, philadelphia eagles to visit the white house, after learning only a handful of players and the mascot were planning to adent. president turning this to a celebration of america for eagle fans. and nfl ratings down about 10% year-over-year, blamed on increase in tv streaming, a lack of marquee match ups and the anthem protest, we bring in ford

o'connel and kelly grace gibson. the players say that protest as a sign of desperation. people wake up to sign of injustice, and other saying, find to protest but not during the anthem. not during the flag, is there anyway to have unity on this to stop the fighting? >> i don't know if there is a way to have unity on this, we should as a country, but to be honest, eagles tried to pull a fast one and reschedule a time when they knew trump would be out of the country, with a handful of players, media would run with it i didn't like it when athletes stood up. and i don't like it when they stand up donald trump, this is say national honor for your team and city, the players may have a grievance about police

mistreatment, but this is a loser when you go against it to make your point by disrespecting the flag, anthem and military. liz: this is also disrespecting the white house. people saying perhaps president trump should have held the event, but this is about respecting the presidency? >> this fuse started before they canceled, mike pence caulking out of stadium, and donald trump picking a fight over twitter two cabe kaepernick. this making a big patriotic thing at football games it new. whether government invested in bringing patriotism. liz: kel -- you say they should have gone? >> it was -- i think if they decided they didn't want to be in fight with president over something they thought was unjust, they should have gracious low said. >> that is note the point, friday, eagle said they would

send 81 members there, monday they said they were backing out, this is all about donald trump, this is international hon -- a national honor regardless of who is in office. liz: mitch blu mitch -- mitch ms kafcanceling senate august rece, cutting it from 4 weeks to one week. blaming historic obstruction by senate democrats against trump agenda. on que, with the disturbing report of social security going bankrupt by i think 2034. >> it is. this is a shrewd political move by mitch mcconnell. there are scores of vacancies on federal bench, this will give us time to put conservatives in there and allow to us take time -- >> wait, are you saying that

republican will use this period to put conservative justices on the bench? >> you are right. that is what i am saying, we'll be able to use it to take at risk democrats off the campaign trail. who will feel sorry for a bunch of pampered babies who don't work 12 months a year,y and a full workweek, do the people's business. liz: should democrats say in dc kelly grace to work in august. >> i think that way the system is -- we have members of congress reelected every two years, a couple months before reelection they go on recess, i think that republicans are afraid of a blue wave, we know it is coming, they are trying to keep them in dc, do i think there is a lot of stuff broken in dc, would i love everyone to work together. that is why senator mcconnell kept them, do i think this stunt

will make democrats more likely to comome wit the president i don't think so. >> democrats have obstructd and worked senate rules out, senate recess is a new thing, it came in 1971, do the people's business. liz: go ahead. >> modern campaigning, constituents need to be talkd to, and republican are scared. >> i promise you willie win the senate. liz: i promise you will be back in a bit to fight mere more. >> thank you. liz: rumors about a trade war, were they overblown? look at china offering a 70 billion dollar olive branch to the white house. coming up our guest said that president's tough trade talk is working. >> and this, president pardons ex navy sailor christian

saucier, and now saucier wants to sue president obama and officials for unprotected -- under the law. we bring in judge napolitano. up next, don't go away.

>> i would have taken my punishment the same way, like a man. i made a mistake when i was a kid, clear attempt under obama to use me as a scapegoat to take heat off of hillary clinton. liz: ex navy sailor kristian saucier, he will sue former president obama, and james comey and other justice department officials, unequal protect under the law, he served a year in federal prison, paid a find for mishandles information, and took photos in an area of a submarine, he claims he was

prosecuted while hillary clinton of the treated leniently in her handling of classified e-mail and her private server. joining us to break this down, judge napolitano. does he have a case. >> he took a selfie like this. for getting behind him, was a sonar screen, under the ocean, in a submarine, he sends this selfie to his wife, this is as innocent as can be, for that he was prosecuted for failure to seiche guard state secret. read out on that sonar screen. and mrs. clinton 30,000 e-mails missing, we know 25 that were top-secret, and a hundred in secret category, you can't compare. she was not prosecuted, he was. he has been pardoned by the president, he wants to sue

people who prosecuted him, he does not have a case. liz: why. >> decision of whether to prosecutor not, unless based on a hatred of a part of a government of a group to which he belongs, a navy white male military guy, he does not belong to a minority group, he does not -- he cannot call into question that decision. as well, he pleaded guilty. he admitted to doing the act, that i just mimicked. that caused that radar screen to go to his wife. theory is not that haze wife is a foreign agent, but could have been hacked. liz: do they have immunity. >> they have qualified immunity, as long as decision was based on decision of real evidence and

free of hatred for the group to which he belongs, decision to pros computer or not -- prosecutor not prosecute is immune. >> he really go the hit hard. >> he did, present president righted the wrong of the former president. what makes this such a rubbed raw thing, is what mrs. clinton got away with, by comparison, this was going on at the same time, at same time fbi was investigating her, saucier was pleading guilty. liz: he lost his house, his job, his car. he really within through it. all right to this story, next case. supposed to be released in april, justice department inspector general report delaying that report. it has yet to come out. this is handles of clinton e-mail probe, not about clinton a actions but actions of government officials working on the clinton probe.

president trump asking why it is taking so long at doj, judge he is you know we have talked about michael horowitz, he has a stellary reputation. >> he does, i have been slightly responsible for joining up president's impatience for asking the same on fox and friends this morning, i apologize if my question, it was rhetorical was interpreted by him or others as literal. but michael over -- horowitz, inspector general, confirmed, has a superb reputation for being thorough if he quotes new one of his reports, he runs quote past you, to make sure he is quoting you correctly. liz: interesting it has been a year in january last year, 2 faces toughest criticism in this report? >> comey.

liz: anyone else. >> loretta lynch, that meeting on tarmac. liz: what do you think comby is most afraid of here? >> a conclusion there was no rational basis to exonerate her, that was comey's belief she was about to become his boss. liz: talking about hillary clinton. >> yes. sally yates, number two person, between loretta lynch and comby in justice department. al abdicated responsibility on this a number of people would come in for very severe contribute. loreeloretta limp lynch may be r than comey. she permitted someone, head of fbi to make a decision, head of fbi never gets to make, fbi gathers evidence, and submits it

to professional prosecutor, the fbi does not decide to prosecute, jim comey, knowing that 1knowingloretta lynch was e picture, and sally yates felt same way he did, he made the decision whether or not to prosecute, that is not a decision that fbi directer or is authorized to make. it is all come to come out. liz: we want to have you back to, break it down for you, you are so good. >> see new the morning. liz: on the varney show, we love that. let's get to the story for you, bill clinton downplaying his initial comments about monica lewinsky after a backlash. we'll show you what has gotten people fired up over what bill clinton said. >> those rumors of a trade war

with china, were they overblown? china offering a olive branch to the white house. about a fifth of trade deficit with u.s., we bridge in mark lauder who works with president trump. whether tough trade talk on our side is working, that is next, don't go away. middle of the ni. hold on dad... liberty did what? yeah, liberty mutual 24-hour roadside assistance helped him to fix his flat so he could get home safely. my dad says our insurance doesn't have that. don't worry - i know what a lug wrench is, dad. is this a lug wrench? maybe? you can leave worry behind when liberty stands with you™. liberty stands with you™. liberty mutual insurance. copd makes it hard to breathe. so to breathe better, i go with anoro. ♪ go your own way

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liz: china offering an ol of branch to white house to buy u.s., foreign and energy products, and direct at president trump's voting base. this 70 billion is about a fifth of trade deficit, between u.s. and china. but first breaking news on zte, edward lawrence in dc . >> reuters reports that zte signed a settlement grime for enforcement act that allows them to buy u.s. technology again. two weeks ago we broke news settlement of the offered to the company, trump tills fox news that. company would pay a fine on top of fine they have paid, and change management and bored of directors, also would have to add a compliance committee, including an american familiar with international import/export trades, then they could buy more u.s. technology.

>> a statement senator schumer said if they are try, president has put china, not u.s. in first, by letting xte off the hook. >> congress should move in a bipartisan path to block the deal. still president said he is tough on china, administration not backing down on tariffs they are looking to impose, a source familiar with the government source tells bhee me me, china d $70 billion to buy more farm, energy equipment and products, kleichina want us to drop tarifs we're imposing and limited chinese company ability to to invest in american technology, administration not backing off. >> i think that there are a lot of things going on in 301 space. we're trying to get china to

stop stealing intellectual property every year. there is a lot going on. reporter: congress wants their say, sources familiar with trade tell me, senator bob corker tomorrow will ini inre-- introda bill. this bill may have to be added to a bill that is already open like national defense authorize act. >> terrific reporting thank you. liz: let's get to the some critics say is overblown, rumors of trade war, china, you heard edward say $70 billion, a new trade deal with u.s., is trump tough talk on trade working? mark lauder. is it working? >> absolutely. this is a very clear example of

president backing up what he said he was going to do, protect american interests, as it relates to klein, he has been tough in that talk it causes some agent in the clin -- anxiety in beginning we're starting to see the fruits of the labor. stop theft of american technology and intellectual property that poses a greater long-term threat to our economy. liz: it is about resetting perspective on this story. this is a going to be a long negotiation, there will be several chapters in this negotiation, president said we have lost a trade fight with china, given you know huge trade deficit. zte company, factors big in the march to dominate technology and military technology. it is accused of stealing hundreds of patents, china takes

the blueprints and marches off with it, are we being too lenient on xte . >> no, that is why president insisted there be a new management, a new board of directors, someone from u.s. overseeing it. almost like if we were in a weapons negotiation i would have outside people verifying and make sure they are acting how they should be. with safe gaurs in place president is prepared to allow this to move forward, most of xte is buying technology parts from u.s. company. liz: mark thank you. >> thank you. liz: google, liberal silicon valley google, telling workers it will not renew contract with pentagon to work on artificial intelligence. we have new breaking details on

work that pentagon is doing involving artificial intelligence, it could save lives in the world. but first, bill clinton now downplays his initial comments about monica lewinsky after a backlash, we show you what has people fired up. >> and look who else is fired up, bree peyton is responding to the sound after this. sher inves. some advisers have hidden and layered fees. fisher investments never does. and while some advisers are happy to earn commissions from you whether you do well or not, fisher investments fees are structured so we do better when you do better. maybe that's why most of our clients come from other money managers. fisher investments. clearly better money management.

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>> i have. >> you have apologized. >> i have apologized to everyone in the world. >> not to her. >> i have not talked to her. >> i never talk to her. but i did say publicly, i was sorry. that is different. >> former president bill clinton trying to do damage control over

those comments about monica lewinsky, he lied twice about his affair with monica lewinsky, who is just over 6 years older than chelsea. he is defending himself saying he was agitated during the interview. >> the truth is, i got hot under the collar. because of the way the questions were asked, tn suggesttion that i never apologized, i did, i men imeant it then, now, i apologizd to my family, to monica family and the people, i support the "me too" movement, i have tried to support it in decisions and policies that i have advanced. liz: bringing in bree peyton,

striking how unprepared bill clinton was for this interview, he never apologized privately. >> i do think that his unpreparedness to the question really says a lot, it is clear you know members of clinton family expect a free pass, and tough questions, and to get royalty treatment from members from press. when it did not happen, he was the shocked. anaghast and did not have answer prepared. this is reasonable in wake of "me too" movement to say let's revisit what happened with monica and rehash that. she was patient zero in that. and he was not able to foresee a question like that, coming his way is really quite shocking. i think you know, the known apology he has been --

nonapology says a lot. liz: where is outrage with "me too" movement with what happened to monica lo lewinsky. the clinton attacked her reputation, hillary clinton, on record calling her a quote narcissistic loonie, and also first person abused by internet trolls. >> yeah, do think that outrage that we see from feminists is selective. certain women are going to be elevated as victims and others minimized because of who the person who abused or took advantage of them was. i think that is wrong. i think that all women deserve to be believed. their stories of the issues need to be listened to regardless of who was doing it to them. i think certainly this ce is important, and should be raised to level of importance along with wrath.

when i was growing up, when i did something bad, and got caught and apologized after being caught, my parents would assault it clinton sorry, they would say, i was not actually sorry about what i did, i was sorry that i got caught. and i think that it is clear that is what bill clinton did in 1998, and has been doing for 20 years, he is doubling down and taking that course of action again. liz: bree payson thank you for coming on. >> thank you. liz: to this story, blowing up in silicon valley, big fight at google over pentagon contract. google under pressure from workers banning the pentagon contract to work on artificial intelligence. wait until you hear that artificial intelligence program that pentagon is working on that could save lives from the world, my panel reacting after this.

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tech giant google vowing to pressure from workers not renewing a contract with the pentagon that provides the company's artificial algorithms to improve the targeting of drone strikes for the military. again the employees tested, google backing down. google stock closing slightly higher. let's bring back the political panel. here is what ford is doing, ramping up spending on a project that uses artificial intelligence to help anticipate the launch of nuclear missiles in north korea and around the world. i mean that's where the pentagon is working on, that saves lives. >> it does save lives. what surprises me is the nighee

taygoogleemployees. china are russia are going to do it. they're hurting their country, their company and their ear also hurting their own personal safety by not taking part in this. >> other countries are doing this artificial intelligence work. are they behind the eight ball? >> employees do not make giant decisions about company's investments. >>ut they did under pressure, right? >> there was a bigger reason that they ended the ctrac their company is going in a different direction. >> what's the bigger reason? >> a handful of employees at google could not have been the reason that google decided not to re-up the contract. >> the ceo did not want to do it. >> i think there's other opportunities for him. >> there's a lot of money in military contracts and they were sucking the pentagon dry. and what they're talking about is a similar project.

essentially they bow to the pressure and they're hurting the company's bottom line. it would be going up higher if they were given a greater pentagon contract. >> i'm sorry. we've got to move on. what's going on with people being called memes on google searches. a trump supporting republican state senator labeled as a bigot. also another search result where the word naziism came up under the etiology for the california republican party. kelly grace, your reaction to all of this? >> i think the algorithms for search engines change all of the time and the data points are from user generated content. google and other search engines are trying to advance the algorithms to be honest and good but it's an impossibility to make sure they're not pulling

from week pai week paid ya. >> there's complaints that google is too slow to fix it? >> look, as a former partner in a tech political form, a majority of americans get their news online. the first place they go is google and often they don't go past the first page. purposefully or not, it becomes a tool for left-wing political propropaganda. final word. >> democrats aren't the only word that google. >> you're a lot better at exeurlts than wcomputers than w. >> that's bologna. all of the tech firms needs to be for responsiblabl responsible information. >> and the republicans need to get on the computer more. we love having you on. come back soon. primary night, eight states. including california. we're going to have more after the break.

elizabeth: tonight fox business live coverage 8 p.m. eastern time. you will not want to miss it. thank you so much for having us in your homes. thank gru for watching. charles payne is here now with "making money." charles: good evening, the economy on fire. so much positive data out this morning. small business optimism and job openings. i've been banging the table on the brick and mortar retailers. nothing is hotter. not even amazon. it's primary day in eight states around the country, michael it the most consequential day of the year leading into elections. tonight, details on the major offer reiterated by china where they would buy 70 million dollars from the united states in farm and energy promghts if president trump doesn't impose the tariffs. here to break it down,